The homes were advertised on the council intranet in July 2007
A council officer at the centre of an investigation into why staff were able to move into low-rent accommodation for the elderly has been dismissed.
Norwich City Council said Kristine Reeves, head of neighbourhood and strategic housing services, had been guilty of gross misconduct.
It follows an investigation into why staff, including Ms Reeves and her boyfriend, were able to rent the homes.
Residents had been told the Greyhound Opening complex was to be demolished.
On Friday night sources close to Ms Reeves told the BBC "she was considering her next step".
The council said in a statement: "As a result of a disciplinary hearing, Kristine Reeves has been dismissed without notice.
"Three allegations were considered. Taken together, the hearing concluded that they represent gross misconduct."
The allegations were that Ms Reeves:
• in July 2007, was responsible for adopting a lettings process for the decommissioned sheltered housing at Greyhound Opening that did not comply with, and was contrary to council policy
• failed to ensure that her service had adopted a proper procedure with appropriate safeguards for the letting of decommissioned sheltered housing to staff
• in September 2008, as the head of service responsible for the management of the decommissioning of the sheltered housing units, she moved into Greyhound Opening and took a joint tenancy with her partner, who was also her work colleague.
The council said Ms Reeves "failed to see this as a conflict of interest or seek approval for this action".
The council concluded: "As a consequence of these actions she has brought the council into severe disrepute."